The Conference Board says that, despite significant weakness, the economy is not contracting.
The board’s Composite Index of Leading Economic Indicators rose 0.1 percent in May, after the same rise in April and no change in March. In a statement, Ken Goldstein, a labor economist with the group, said the economy is not contracting and may not do so in the second half of the year. He said it’s even possible the economy may turn a corner early next year.
The index’s rise over the last two months comes after a steady decline that began in the middle of last year. The board said the main contributors to the increase were the interest rate spread and stock prices. Real money supply, consumer expectations and building permits declined, but not enough to offset the positive factors.
